Exhibit 99.1
![]() | News Release |
2000 W. Sam Houston Parkway South
Suite 1700
Houston, TX 77042
713-267-7600 Tel
Suite 1700
Houston, TX 77042
713-267-7600 Tel
BRISTOW GROUP INC. REPORTS FISCAL 2007 FIRST QUARTER
FINANCIAL RESULTS
FINANCIAL RESULTS
HOUSTON (Aug. 8, 2006)— Bristow Group Inc. (NYSE: BRS) today reported financial results for its fiscal 2007 first quarter ended June 30, 2006.
Highlights included the following:
For the quarter ended June 30, 2006:
• | Net income of $17.2 million was up 44 percent over the June quarter a year ago; earnings per diluted share of $0.73 rose 43 percent for the same three-month period last year; | ||
• | Total revenue of $221.1 million increased by 22 percent over the first quarter of fiscal year 2006, from improvements in nearly all business units; | ||
• | The earnings improvement was driven primarily by increases in higher operating income for North America, South and Central America, Europe and Eastern Hemisphere Centralized Operations; | ||
• | Earnings were also impacted by the following events: |
• | Foreign exchange losses of $4.8 million in the current quarter versus gains of $2.8 million in the comparable prior year period; | ||
• | A slight increase in general and administrative costs to $15.3 million versus $15.0 million during the prior fiscal year’s first quarter; | ||
• | An increase in the effective tax rate for the June 2006 quarter to 33.0 percent from 20.9 percent for the June 2005 quarter. |
• | The consolidated balance sheets reflect $575.7 million in stockholders’ investment, $109.6 million in cash and cash equivalents, and $261.5 million of indebtedness; |
William E. Chiles, president and chief executive officer of Bristow Group Inc., said, “We had a strong June quarter as we continued to run at full capacity. Additionally, our improved infrastructure and more streamlined operations are allowing us to grow operating income at a faster rate than our top line. As the favorable market conditions continue, we see additional growth opportunities that we intend to pursue with a high degree of discipline, primarily by working jointly with our customers to fulfill their aircraft needs.”
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Bristow Group Inc. | Page2 | |
Reports Fiscal 2007 First Quarter Financial Results |
CONFERENCE CALL
Management will conduct a conference call starting at 10:00 a.m. EDT (9:00 a.m. CDT) on Wednesday, August 9, 2006, to review financial results for the three months ended June 30, 2006. The conference call can be accessed as follows:
Management will conduct a conference call starting at 10:00 a.m. EDT (9:00 a.m. CDT) on Wednesday, August 9, 2006, to review financial results for the three months ended June 30, 2006. The conference call can be accessed as follows:
Via Webcast:
• | Visit Bristow Group’s investor relations Web page at http://www.bristowgroup.com | ||
• | Click on the link for “FY2007 First Quarter Conference Call” | ||
• | Webcast replay available approximately one hour after the call’s completion |
Via Telephone within U.S.:
• | Toll free (800) 320-2978, passcode: 88313773 | ||
• | A telephone replay will be available through September 8, 2006 by dialing toll free (888) 286-8010, passcode: 47864984 |
Via Telephone outside the U.S.:
• | Dial (617) 614-4923, passcode: 88313773 | ||
• | A telephone replay will be available through September 8, 2006 by dialing (617) 801-6888, passcode: 47864984 |
ABOUT BRISTOW GROUP INC.
Bristow Group Inc. is a leading provider of helicopter services to the worldwide energy industry. Through its subsidiaries, affiliates and joint ventures, the Company has major transportation operations in the U.S. Gulf of Mexico and the North Sea, and in most of the other major offshore oil and gas producing regions of the world, including Alaska, Australia, Brazil, China, Mexico, Nigeria, Russia and Trinidad. Additionally, the Company is a leading provider of production management services for oil and gas production facilities in the U.S. Gulf of Mexico. The Company’s Common Stock trades on the New York Stock Exchange under the symbol BRS.
Bristow Group Inc. is a leading provider of helicopter services to the worldwide energy industry. Through its subsidiaries, affiliates and joint ventures, the Company has major transportation operations in the U.S. Gulf of Mexico and the North Sea, and in most of the other major offshore oil and gas producing regions of the world, including Alaska, Australia, Brazil, China, Mexico, Nigeria, Russia and Trinidad. Additionally, the Company is a leading provider of production management services for oil and gas production facilities in the U.S. Gulf of Mexico. The Company’s Common Stock trades on the New York Stock Exchange under the symbol BRS.
FORWARD-LOOKING STATEMENTS DISCLOSURE
Statements contained in this news release that state the Company’s or management’s intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. These forward-looking statements include expected costs related to the SEC and DOJ investigations and effective tax rate. It is important to note that the Company’s actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company’s SEC filings, including but not limited to the Company’s quarterly report on Form 10-Q for the three months ended June 30, 2006 and the annual report on Form 10-K for the year ended March 31, 2006. Bristow Group Inc. disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events or otherwise.
Statements contained in this news release that state the Company’s or management’s intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. These forward-looking statements include expected costs related to the SEC and DOJ investigations and effective tax rate. It is important to note that the Company’s actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company’s SEC filings, including but not limited to the Company’s quarterly report on Form 10-Q for the three months ended June 30, 2006 and the annual report on Form 10-K for the year ended March 31, 2006. Bristow Group Inc. disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events or otherwise.
Investor Relations Contact:
Joe Baj — Bristow Group Inc.
(713) 267-7605
Joe Baj — Bristow Group Inc.
(713) 267-7605
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(financial tables follow)
(financial tables follow)
Bristow Group Inc. | Page3 | |
Reports Fiscal 2007 First Quarter Financial Results |
BRISTOW GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended | ||||||||
June 30, | ||||||||
2006 | 2005 | |||||||
Gross revenue: | ||||||||
Operating revenue from non-affiliates | $ | 181,786 | $ | 150,748 | ||||
Operating revenue from affiliates | 12,079 | 11,486 | ||||||
Reimbursable revenue from non-affiliates | 26,125 | 17,428 | ||||||
Reimbursable revenue from affiliates | 1,072 | 1,275 | ||||||
221,062 | 180,937 | |||||||
Operating expense: | ||||||||
Direct cost | 138,470 | 122,552 | ||||||
Reimbursable expense | 26,898 | 18,662 | ||||||
Depreciation and amortization | 10,283 | 10,307 | ||||||
General and administrative | 15,349 | 14,963 | ||||||
Gain on disposal of assets | (998 | ) | (592 | ) | ||||
190,002 | 165,892 | |||||||
Operating income | 31,060 | 15,045 | ||||||
Earnings from unconsolidated affiliates, net of losses | 1,559 | 46 | ||||||
Interest income | 1,290 | 1,032 | ||||||
Interest expense | (3,236 | ) | (3,708 | ) | ||||
Other income (expense), net | (4,785 | ) | 2,783 | |||||
Income before provision for income taxes and minority interest | 25,888 | 15,198 | ||||||
Provision for income taxes | (8,543 | ) | (3,176 | ) | ||||
Minority interest | (116 | ) | (50 | ) | ||||
Net income | $ | 17,229 | $ | 11,972 | ||||
Net income per common share: | ||||||||
Basic | $ | 0.74 | $ | 0.51 | ||||
Diluted | $ | 0.73 | $ | 0.51 | ||||
Weighted average common shares outstanding: | ||||||||
Basic | 23,393 | 23,320 | ||||||
Diluted | 23,508 | 23,582 | ||||||
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Bristow Group Inc. | Page4 | |
Reports Fiscal 2007 First Quarter Financial Results |
BRISTOW GROUP INC. AND SUBSIDIARIES
SELECTED OPERATING DATA
(In thousands, except flight hours and percentages)
(Unaudited)
SELECTED OPERATING DATA
(In thousands, except flight hours and percentages)
(Unaudited)
Three Months Ended | ||||||||
June 30, | ||||||||
2006 | 2005 | |||||||
Flight hours (excludes unconsolidated affiliates): | ||||||||
Helicopter Services: | ||||||||
North America | 40,595 | 35,778 | ||||||
South and Central America | 9,285 | 9,516 | ||||||
Europe | 10,170 | 9,731 | ||||||
West Africa | 8,883 | 8,344 | ||||||
Southeast Asia | 3,206 | 2,722 | ||||||
Other International | 2,052 | 1,603 | ||||||
Consolidated total | 74,191 | 67,694 | ||||||
Three Months Ended | ||||||||
June 30, | ||||||||
2006 | 2005 | |||||||
Gross revenue: | ||||||||
Helicopter Services: | ||||||||
North America | $ | 66,800 | $ | 52,449 | ||||
South and Central America | 13,237 | 10,037 | ||||||
Europe | 71,393 | 59,179 | ||||||
West Africa | 31,736 | 25,909 | ||||||
Southeast Asia | 17,041 | 13,808 | ||||||
Other International | 8,954 | 7,588 | ||||||
EH Centralized Operations | 14,405 | 12,407 | ||||||
Intrasegment eliminations | (17,298 | ) | (15,462 | ) | ||||
Total Helicopter Services | 206,268 | 165,915 | ||||||
Production Management Services | 17,684 | 16,969 | ||||||
Corporate | (25 | ) | 16 | |||||
Intersegment eliminations | (2,865 | ) | (1,963 | ) | ||||
Consolidated total | $ | 221,062 | $ | 180,937 | ||||
Operating income: | ||||||||
Helicopter Services: | ||||||||
North America | $ | 11,095 | $ | 9,783 | ||||
South and Central America | 3,622 | 412 | ||||||
Europe | 9,036 | 6,920 | ||||||
West Africa | 2,408 | 2,071 | ||||||
Southeast Asia | 1,089 | 707 | ||||||
Other International | 1,106 | 1,227 | ||||||
EH Centralized Operations | 5,460 | (1,286 | ) | |||||
Total Helicopter Services | 33,816 | 19,834 | ||||||
Production Management Services | 1,413 | 1,320 | ||||||
Gain on disposal of assets | 998 | 592 | ||||||
Corporate | (5,167 | ) | (6,701 | ) | ||||
Consolidated total | $ | 31,060 | $ | 15,045 | ||||
Operating margin: | ||||||||
Helicopter Services: | ||||||||
North America | 16.6 | % | 18.7 | % | ||||
South and Central America | 27.4 | % | 4.1 | % | ||||
Europe | 12.7 | % | 11.7 | % | ||||
West Africa | 7.6 | % | 8.0 | % | ||||
Southeast Asia | 6.4 | % | 5.1 | % | ||||
Other International | 12.4 | % | 16.2 | % | ||||
EH Centralized Operations | 37.9 | % | -10.4 | % | ||||
Total Helicopter Services | 16.4 | % | 12.0 | % | ||||
Production Management Services | 8.0 | % | 7.8 | % | ||||
Consolidated total | 14.1 | % | 8.3 | % |
Bristow Group Inc. | Page5 | |
Reports Fiscal 2007 First Quarter Financial Results |
BRISTOW GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, | March 31, | |||||||
2006 | 2006 | |||||||
(in thousands) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 109,634 | $ | 122,482 | ||||
Accounts receivable from non-affiliates, net of allowance for doubtful accounts of $4.2 million and $4.6 million, respectively | 158,096 | 144,521 | ||||||
Accounts receivable from affiliates, net of allowance for doubtful accounts of $4.6 million and $4.6 million, respectively | 16,862 | 15,884 | ||||||
Inventories | 155,679 | 147,860 | ||||||
Prepaid expenses and other | 17,215 | 16,519 | ||||||
Total current assets | 457,486 | 447,266 | ||||||
Investments in unconsolidated affiliates | 40,668 | 39,912 | ||||||
Property and equipment — at cost: | ||||||||
Land and buildings | 43,815 | 40,672 | ||||||
Aircraft and equipment | 900,167 | 838,314 | ||||||
943,982 | 878,986 | |||||||
Less: accumulated depreciation and amortization | (279,184 | ) | (263,072 | ) | ||||
664,798 | 615,914 | |||||||
Goodwill | 26,807 | 26,837 | ||||||
Prepaid pension costs | 40,576 | 37,207 | ||||||
Other assets | 9,459 | 9,277 | ||||||
$ | 1,239,794 | $ | 1,176,413 | |||||
LIABILITIES AND STOCKHOLDERS’ INVESTMENT | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 57,330 | $ | 49,714 | ||||
Accrued wages, benefits and related taxes | 44,960 | 45,958 | ||||||
Income taxes payable | 10,851 | 6,537 | ||||||
Other accrued taxes | 7,791 | 6,471 | ||||||
Deferred revenues | 11,048 | 9,994 | ||||||
Other accrued liabilities | 27,735 | 22,596 | ||||||
Deferred taxes | 6,618 | 5,025 | ||||||
Short-term borrowings and current maturities of long-term debt | 14,489 | 17,634 | ||||||
Total current liabilities | 180,822 | 163,929 | ||||||
Long-term debt, less current maturities | 247,029 | 247,662 | ||||||
Accrued pension liabilities | 145,116 | 136,521 | ||||||
Other liabilities and deferred credits | 17,511 | 18,016 | ||||||
Deferred taxes | 69,245 | 68,281 | ||||||
Minority interest | 4,349 | 4,307 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ investment: | ||||||||
Common Stock, $0.01 par value, authorized 35,000,000 shares; outstanding: 23,430,097 shares as of June 30 and 23,385,473 shares as of March 31 (exclusive of 1,281,050 treasury shares) | 234 | 234 | ||||||
Additional paid-in capital | 161,191 | 158,762 | ||||||
Retained earnings | 464,753 | 447,524 | ||||||
Accumulated other comprehensive loss | (50,456 | ) | (68,823 | ) | ||||
575,722 | 537,697 | |||||||
$ | 1,239,794 | $ | 1,176,413 | |||||
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